This procedure outlines the process for receiving, verifying, approving, and paying supplier invoices at Green A&E. It ensures that all payments are authorized, accurate, and compliant with contractual terms, company policies, and applicable regulations.

2. Scope

This procedure applies to all supplier and contractor invoices related to goods, services, or projects procured by Green A&E under a valid Purchase Order (PO) or approved contract.

3. Objectives

• Maintain strong internal financial controls.
• Ensure timely and accurate payment of supplier invoices.
• Prevent duplicate, unauthorized, or erroneous payments.
• Ensure compliance with tax, accounting, and audit requirements.

4. Responsibilities

• Supplier: submits valid invoices referencing PO and delivery details.
• Receiving Department: confirms delivery and quality of goods/services.
• Procurement Officer: ensures PO accuracy and supplier compliance.
• Finance Department (Accounts Payable): reviews, verifies, processes, and records invoices for payment.
• Management / Authorized Signatory: approves payments according to financial authority limits.

5. Procedure

Step 1 – Invoice Receipt

• All supplier invoices must be submitted to accounts [at] green.org or the designated finance address or uploaded via our web portal.
• Invoices received by other departments must be forwarded immediately to the Finance Department.

Each invoice must reference:

• A valid Purchase Order number
• Description of goods or services
• Delivery or completion date
• Supplier tax and bank details
• Applicable taxes (e.g., VAT)

Finance logs all invoices in the Accounts Payable Register upon receipt, assigning a unique tracking number and date.

Step 2 – Initial Verification

The Accounts Payable (AP) team performs a preliminary check to ensure:

• The invoice is addressed correctly to Green A&E.
• The PO number and supplier details match company records.
• Duplicate invoices are not present.
• The invoice date and payment terms are valid.

Invoices failing these checks are returned to the supplier for correction.

Step 3 – Three-Way Match

Before payment approval, AP verifies the following three documents:

1. Purchase Order (PO) – confirms authorized purchase.
2. Goods/Service Receipt Note – confirms items were received and accepted.
3. Supplier Invoice – confirms amount and description match the PO and receipt.

Any discrepancies (quantity, pricing, delivery) must be investigated with Procurement and the supplier before proceeding.

Step 4 – Coding and Approval

• Once verified, the invoice is coded to the appropriate expense or project account.
• The invoice and matching documentation are reviewed by the Department Manager or Project Lead for approval.
• Approval must be documented either via signature or digital authorization within the accounting system.

Step 5 – Payment Scheduling

Approved invoices are scheduled for payment according to supplier terms (typically 30 days from invoice date, unless otherwise agreed).

• Payments are batched monthly.
• Urgent or exceptional payments require management approval.

Step 6 – Payment Processing

The Finance Department prepares payment via bank transfer or other approved methods.

• Payment vouchers or electronic payment forms are reviewed and signed by two authorized signatories in accordance with the Delegation of Authority.
• Once processed, payment details are recorded in the Accounts Payable Ledger and matched with the cleared bank transaction.

Step 7 – Record Keeping

• All supporting documents (invoice, PO, receipt, approvals, and proof of payment) are stored securely—digitally or physically—for at least seven years or as required by law.
• The Accounts Payable Register is updated to reflect payment status and due dates.
• Periodic reconciliation with the General Ledger and bank statements ensures accuracy.

6. Discrepancies and Disputes

If discrepancies or disputes arise, the Finance Department coordinates with the supplier and Procurement to resolve the issue.

Payments are placed on hold until the discrepancy is resolved and documented.

7. Internal Controls

• No payment may be made without a verified invoice and valid PO.
• Manual payments outside the system require written management approval.
• Segregation of duties is enforced between staff who verify, approve, and execute payments.

Regular internal audits assess compliance with this procedure.

8. References

• Green A&E Procurement Policy
• Purchase Order Process
• Financial Management Policy
• Code of Ethics and Compliance Standards